SWIFT, the worldwide monetary messaging community, is working with over a dozen banks to check on-chain messaging utilizing Linea, the Ethereum layer-2 platform developed by ConsenSys.
Establishments together with BNP Paribas and BNY Mellon are taking part within the initiative, which can also be thought of a stablecoin-like settlement token.
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SWIFT and International Banks Start Linea Blockchain Messaging Trial
A supply inside one financial institution mentioned the undertaking may mark “a technological transformation for the worldwide interbank funds trade,” although growth will take a number of months earlier than outcomes develop into clear.
SWIFT connects over 11,000 monetary establishments, transmitting cost directions however not funds. Its centralized mannequin will depend on intermediaries and legacy rails, which critics argue add complexity and delay. The pilot seeks to find out whether or not Linea’s zk-rollup structure—designed for quicker, scalable transactions with privacy-focused cryptography—can streamline messaging and settlement whereas assembly regulatory requirements.
The initiative follows SWIFT’s broader blockchain efforts. The community lately introduced new guidelines for retail cross-border funds to extend pace and predictability. International banks plan to trial reside digital asset transactions on their infrastructure from 2025.
Earlier pilots confirmed blockchain interoperability, with UBS and Chainlink serving to SWIFT full tokenized asset transfers. The community additionally explored world digital asset transaction frameworks and thought of integration with the XRP Ledger.
Linea, which launched its token this 12 months to help a $72 billion decentralized finance ecosystem, positions itself as an enterprise-ready setting for banks in search of compliance and scalability.
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In a current panel dialogue, SWIFT executives additionally addressed the pilot and the broader digital asset shift, and executives careworn that the trade is shifting into a brand new part.
We’re past experiments now. The query is learn how to scale—no matter whether or not the instrument is a tokenized deposit, a CBDC, a stablecoin, or a tokenized fund. It comes right down to what precisely we’re connecting and the place the worth exhibits up.
Tom Zschach, SWIFT
Scaling Blockchain Messaging Faces Authorized and Compliance Hurdles
Supporters argue blockchain messaging may improve settlement effectivity, programmability, and transparency. Nevertheless, hurdles stay. Banks face steep integration prices, operational dangers, and regulatory scrutiny round token issuance and transaction information. One important impediment is authorized certainty.
Settlement is a authorized assemble, not a technical one. We have to align a blockchain’s affirmation mannequin with authorized finality. With out that alignment, scaling will probably be tough.
Tom Zschach, SWIFT
The remark highlights why requirements, rulebooks, and jurisdictional readability are important for recognizing on-chain settlement in court docket.
Whereas full adoption is unsure, the pilot indicators SWIFT’s intent to align its infrastructure with rising digital asset markets. The result may decide whether or not blockchain turns into embedded in world interbank communication.